DISADVANTAGED BUSINESS SET-ASIDE PROGRAMS: AN EVALUATION

The primary purpose of this study is to provide an analysis of business set-aside programs in order to improve our understanding of the history, goals, and performance of set-aside programs. The authors focus on Illinois. They use the phrase "set-asides" to encompass a wide range of programs that may involve goals, earmarked funds, preferences, sheltered markets, quotas, and other variations. Not all of the analysis and commentary in this study applies equally to each variation. Further, the authors' focus tends to be on blacks as the disadvantaged group most affected by set-asides, although women and other minority groups, facing their own sets of problems and experiences, also participate in most of the programs discussed. Much essential information for this study was acquired during two focus group meetings with persons who participate in or administer set-aside programs in Illinois. The authors have organized their research and discussion into five parts. In Part I, they review the legislative background of set-aside programs and other public policies designed to favor one group or another in the letting of public works projects. In Part II, the authors examine set-asides in practice, addressing such questions as what has been their impact on disadvantaged businesses, what effect have they had on the economic prosperity of minorities and women, and what difficulties are posed in their administration. In Part III, the authors address the moral and legal theories and economic assumptions offered in support of set-aside programs. On the basis of this analysis, the authors conclude that set-aside programs have failed to remedy past discrimination and have not markedly improved economic conditions of minorities and women in Illinois. For that reason, the authors present in Part IV a reform agenda--one they believe would prove not only practical, but far more effective in meeting the objectives that set-aside programs were designed to serve. A summary and concluding remarks constitute Part V.

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  • Corporate Authors:

    The Heartland Institute

    634 South Wabash Avenue, Second Floor
    Chicago, IL  United States  60605
  • Authors:
    • Bast, D
    • Freed, M
    • Polsby, D
    • ULEN, T
  • Publication Date: 1989-6-29

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Filing Info

  • Accession Number: 00492005
  • Record Type: Publication
  • Report/Paper Numbers: Policy Study No. 26
  • Files: TRIS
  • Created Date: Mar 31 1990 12:00AM